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Applying for payday loans in Alabama

The state of Alabama has one of the highest numbers of payday loan providers in the U.S.  In fact, Birmingham City councilors passed a six-month moratorium late last year, halting further licensing for such businesses until a comprehensive plan for their regulation is developed.  However, the growth of payday services is unlikely to decline in the near future, given their popularity among U.S. households.  According to a recent study, over 19 million families in the country use payday services, with lenders raking in over $7 billion in payments annually.  Nevertheless, it can prove quite tricky to choose suitable loan providers, given the higher annual percentage rate together with additional fees levied on payday loans.  Bridge Payday Loan is one of the industry leaders when it comes to assisting the residents of Alabama in procuring payday advances.

Due to the proliferation of payday loans in Alabama, it has become necessary to draft legislation to oversee the operations of short-term lenders.  The Consumer Financial Protection Bureau of Alabama now has the authority to probe the operations of non-bank payday providers, as well as mainstream banks that offer cash advances.  This is in line with both state and federal laws regarding fair lending practices, aimed at curbing usury and protecting consumers.  Accordingly, residents of Alabama in need of small cash loans should consider the following factors before accepting offers from providers: 

Maximum Amount Offered

One can only borrow a maximum amount of $500 from payday providers in Alabama. The repayment period for the loan is 10 to 30 days after issue. Apart from the principle amount borrowed, lenders cannot claim interest or fees for any additional credit given.  State laws have also put a cap on the annual percentage rate (APR) for short-term loans at 17.5% of the total amount borrowed. 

Loan Processing Fees

Payday loan providers can only charge customers processing fees of $30. Additional charges may include only attorney and court fees. The total number of loan processing charges should not exceed 15% of the loan under any circumstances. 

Repeated Borrowing

Typically, payday loans in Alabama last from two weeks to a month.  The law requires lenders to provide an extended repayment period of four equal monthly installments, to customers who cannot settle their debt on time.  However, lenders cannot rollover the short-term loan more than twice until it is repaid back in full. This prevents repeated borrowing by residents, which can lead to a never-ending cycle of debt with triple digit interest rates.  Payday regulations continue to evolve, so consumers will want to check the latest laws and regulations.

Loan Repayment Plan

In Alabama, lenders may charge a 3% penalty to customers who present bad checks while making repayments. The law requires lenders to develop payment plans for customers who are unable to repay their outstanding balances within the agreed timeframe.  State regulations prohibit aggressive debt collection practices such as unauthorized debiting of customers bank accounts. 

Ease of application, rapid turnaround time and minimal requirements make payday loans an attractive borrowing option for customers.  Nonetheless, the higher APR of such credit facilities limits their use to emergencies only.  Customers should carry out due diligence before opting for payday loans in Alabama, in order to make smart decisions before borrowing.  This includes obtaining information about the maximum amount that one can borrow, loan handling fees, repeated borrowing and repayment plans surrounding the loan.  


Thanks all. I was able to pay my rent and not get hit with a late fee, and then easily paid my advance back the following Friday when I got paid.

G. Young
Gainesville, FL

Thank you, thank you, thank you.  Got my cash deposited in my account the same day.  No references was nice too.

B. Carlos
Milwaukee, WI

Great service. Was able to fill out the application and get approved in minutes. Plus got the loan amount I requested. Thanks so much!

U. Craig
Keller, TX